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Range-bound trade targets the QQQ

The PowerShares QQQ Trust has finally broken higher, but a large position today is looking for range-bound trading from here.

A large trade was opened in the Weekly options that expire on Feb. 22. optionMONSTER systems show that 10,000 each of the 66 puts and 69 calls traded, both more than 3 times the previous open interest. The calls went for the bid price of $0.14 and the puts for $0.19.

It appears that both sides of the trade were sold in a short strangle position. This means that the trader takes in the credit of $0.33 and will keep that as profit if the exchange-traded fund is between the two strikes. (See our Education section)

The QQQ is up 1.1 percent to $68.60 this morning, its highest level since resistance was tested in mid-October. Shares were down at support at $62 in November.